Central ND News

Credit scores, derived from various loan and payment data, are key to assessing consumer financial health. While many Americans have diversified credit profiles, an estimated 26 million remain "credit invisible," lacking credit records or repayment histories. This absence of credit information can hinder access to essential financial products like car loans and mortgages.

In response to this issue, U.S. Senators Kevin Cramer (R-ND) and Tim Scott (R-SC) have introduced the Credit Access and Inclusion Act. The proposed legislation aims to allow credit bureaus to include data from payments for services traditionally excluded from credit reporting. These services encompass rent, internet, phone, electricity, and utility payments. The objective is to broaden credit histories, thereby generating credit scores for those previously "unscoreable."

"Millions of Americans pay their utilities, their rent, and their phone bill and other things on time every month, but the narrow scope of credit reporting today doesn’t include these payments, so it doesn’t get calculated into their credit score," stated Senator Cramer. "Our bill is really a simple fix to expand the credit reporting that will then allow these responsible Americans to build credit."

Senator Scott added, "It’s simple, if you pay your bills on time, your credit score should reflect that. This commonsense bill will reward hardworking Americans who manage their finances responsibly, expanding access to credit to help them purchase a home, finance their education, or pursue their dreams."

The bill is cosponsored by several members of the Senate Banking Committee, including U.S. Senators Mike Rounds (R-SD), Katie Britt (R-AL), and Bernie Moreno (R-OH).